Garnet Capital Advisors Blog

Which company will become the next Uber of banking? If the ride-sharing giant has anything to say about it, it will be them.

In recent news, Uber has moved on from its bank partner - Santander - in favor of forming its own department dedicated to auto financing, according to a blog post by the company. This move could signal a greater confidence in Uber to handle the financial industry, and it could even lead to more banking products and services down the line.

Uber's expansion into this realm is not without its competitors, however, as several other firms are also looking to become the Uber of banking, just not with the same pedigree.

Companies look to empower consumers
One of the biggest selling point for Uber is the control it affords its users. If you have a suitable vehicle and the phone app, you can become a driver. Log on to that app, and you can scan your neighborhood for nearby rides. As a result, Uber has become incredibly popular among millennials and the tech-savvy.

This same approach has caught the eye of banking firms. The idea is to give control back to consumers through digital banking, such as with increased self-service and a business model dependent on mobile and online devices. One such firm, getting off the ground in the U.K., is Atom, the Guardian reported. This digital banking firm hopes to become the next Uber-like bank with proprietary software and a do-it-yourself consumer attitude.

A similar effort is underway from a Philippines-based company, according to Rappler. Called Coins.ph, this service is centered around Bitcoin. Anyone using the app can become a Bitcoin ATM, where the currency's purveyors can deposit their funds. Then, the Bitcoin can be transferred among users of the service. Uber for banking, in a way.

Uber moves into financial services
As other companies across multiple industries look to Uber's business model for guidance, the ride-sharing firm itself is working on its own plan to break into the financial services space. 

Previously, Uber relied on Santander bank for this job. But with the announcement of their split, Uber is branching out into its own version of banking. The firm is now offering its own auto financing services, with the pilot program known as Xchange Leasing. 

In the blog post, Andrew Chapin wrote that the program is unique because it allows drivers to return the vehicle with only two weeks notice after just 30 days of driving, and the associated costs of this are reported to be smaller than usual. Through Xchange Leasing, borrowers can lease a used vehicle with an unlimited mileage cap plus included maintenance costs. 

Naturally, it appears that Uber has created an auto financing product tailored specifically for its drivers. Being able to lease a used car, coupled with regular maintenance and no mileage limits, would mean Uber can directly improve i